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on Financial Literacy and Education |
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Issue of 2020‒03‒02
four papers chosen by |
| By: | Jasmira Wiersma; Rob Alessie; Adriaan Kalwij; Annamaria Lusardi; Maarten van Rooij |
| Abstract: | This paper analyzes the financial fragility of Dutch households by examining their ability to raise 2,000 euro within a month in case of a financial emergency. Using data from a survey module fielded in 2016 in the CentERpanel, we document that one in seven Dutch households is financially fragile. Moreover, some demographic groups, specifically females, single person households, renters, low-income households, the lower educated and the unemployed are more likely to be financially fragile. While a majority of households would use their savings to cope with a financial emergency, a noticeable fraction of households would resort to other methods, such as relying on family and friends or borrowing using credit cards. Financial literacy, confidence in financially literacy skills and probability numeracy are all associated with financial fragility as well as with the methods people use to cope with an emergency. These results support previous findings on the importance of financial knowledge and numerical ability for financial decision making. |
| Keywords: | financial fragility; financial literacy; probability numeracy; personal finance; financial behavior |
| JEL: | D14 D91 |
| Date: | 2020–01 |
| URL: | http://d.repec.org/n?u=RePEc:dnb:dnbwpp:670&r=all |
| By: | Carin van der Cruijsen; Jakob de Haan; Ria Roerink |
| Abstract: | Using fourteen years of data on Dutch consumers' trust in financial institutions, we find that financially literate consumers are more likely to trust banks, insurance companies and pension funds, and the competence and integrity of the managers of these institutions. This holds both for broad-scope and narrow-scope trust. Although trust in respondents' own financial institutions is significantly higher than general trust in financial institutions, both forms of trust are positively related. Financially knowledgeable people are more likely to trust the prudential supervisor. Finally, our results indicate that trust in the supervisor is positively related to trust in the financial sector. |
| Keywords: | trust; financial institutions; financial literacy; consumer survey |
| JEL: | D12 D83 E58 G21 G22 |
| Date: | 2019–12 |
| URL: | http://d.repec.org/n?u=RePEc:dnb:dnbwpp:662&r=all |
| By: | Diaz-Bonilla, Eugenio; Fernandez-Arias, Eduardo; Piñeiro, Valeria; Prato, Bettina; Arias, Joaquin |
| Abstract: | IFPRI e IICA, con el apoyo del Secretariado de la Red para la Inversión y la Financiación de la Agricultura en Pequeña Escala (SAFIN en inglés) con sede en FIDA, organizaron el 6 y 7 de mayo de 2019 en la sede del IICA en San José, Costa Rica, un foro para analizar la experiencia en materia de financiamiento e inclusión financiera para el desarrollo agropecuario, rural y de sistemas alimentarios en América Latina y el Caribe (ALC). El objetivo ha sido construir una agenda de temas a analizar para derivar propuestas apropiadas de política económica en esas áreas. Previamente se distribuyó también un documento base para la discusión (Díaz-Bonilla y Fernández-Arias, 2019). Se invitó a especialistas de diferentes países, representando a organismos públicos, al sector privado, incluyendo grupos de productores agropecuarios, sociedad civil, organismos internacionales y organizaciones financieras de desarrollo no gubernamentales. El evento se inició con una presentación del Director General del IICA sobre la situación general del sector agropecuario en la región. Las sesiones temáticas se organizaron con la siguiente estructura: a) una presentación general para dar un marco a la discusión (usando especialmente el documento base mencionado, Díaz-Bonilla y Fernández-Arias, 2019); b) la propuesta de diferentes preguntas indicativas para el análisis; y 3) las intervenciones de los participantes. A continuación, se resumen diferentes aspectos del rico debate y análisis durante el foro, siguiendo básicamente la estructura de temas propuestos en la agenda. |
| Keywords: | COSTA RICA, LATIN AMERICA, CARIBBEAN, food systems, agricultural development, financial institutions, financing, long term credit, banking, government, financial inclusion, |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:lacwps:5&r=all |
| By: | Thomas Philippon |
| Abstract: | The cost of financial intermediation has declined in recent years thanks to technology and increased competition in some parts of the finance industry. I document this fact and I analyze two features of new financial technologies that have stirred controversy: returns to scale and the use of big data and machine learning. I argue that the nature of fixed versus variable costs in robo-advising is likely to democratize access to financial services. Big data is likely to reduce the impact of negative prejudice in the credit market but it could reduce the effectiveness of existing policies aimed at protecting minorities. |
| Keywords: | fintech, discrimination, robo advising, credit scoring, big data, machine learning |
| JEL: | E2 G2 N2 |
| Date: | 2020–02 |
| URL: | http://d.repec.org/n?u=RePEc:bis:biswps:841&r=all |